Date: 08/11/2009

Update on CoverColorado


Votes: View--> Action Taken:

09:04 AM -- Update on CoverColorado

Suzanne Bragg-Gamble, Executive Director, CoverColorado, began her presentation related to CoverColorado and its long-term funding. Three handouts concerning the program and its rates were distributed to the committee (Attachments A through C). Ms. Bragg-Gamble gave an overview of the CoverColorado program, describing its current enrollment levels and the premiums paid by participants in the program. She described the provisions of House Bill 08-1390, which implemented a new funding structure for CoverColorado. The bill also created a long-term funding task force to make recommendations on the long-term viability of the program. The task force made its recommendations in March. That report assumed that funding from the Unclaimed Property Fund would be sufficient to support its share of the program through 2014. However, with the economic downturn and the transfer of money from the fund to the state's General Fund, the funding formula created by House Bill 08-1390, and specifically the share provided by the Unclaimed Property Fund, will not be viable in two years. She described the recommendations of the task force, including that a reimbursement schedule be developed based on a multiple of Medicare rates, and that the insurance assessment currently charged to insurers regulated by the state be broadened to include either a fee assessed on third-party payers or a hospital fee. She described other methods that may be implemented to address the solvency of the program. She noted that the CoverColorado Board of Directors will be meeting in August and would like to return to address the task force regarding its recommendations after that meeting.

090811 AttachA.pdf 090811AttachB.pdf 090811AttachC.pdf

09:19 AM

Ms. Bragg-Gamble responded to questions from the committee regarding implementation of a new provider fee schedule and the rates currently paid to providers participating in CoverColorado. Dr. Christine Gilroy, President of the Board of Directors for CoverColorado, responded to questions from Representative McCann regarding whether or not the payment schedule proposed by the long-term funding task force would represent a cut in payments to providers. Ms. Bragg-Gamble responded to questions from Senator Foster regarding CoverColorado's contracts with insurance carriers. Ms. Barbara Crawford, legal staff to CoverColorado, responded to questions from Representative McCann regarding the premium assessment levied on health insurance carriers. Ms. Bragg-Gamble responded to questions from Senator Schwartz regarding the reserves maintained by CoverColorado.